"At a members' gathering of their league, of which my husband is president, Mr. Dustin uttered a racial slur at my husband after a joking comment referring to Mr. Dustin's golf handicap," Halpin wrote.

Dustin's alleged tirade included using the same expletive four times and repeating the racial slur twice, wrote Halpin, who was at the gathering and said she heard the comments.

"Now I find these words difficult to type, but even more difficult to hear," Halpin wrote after stating specifically what Dustin allegedly said. "I am sure you are as appalled as I am reading these words."

She asked that her letter be added to Dustin's personnel file and that the town take appropriate action to prevent it from happening again.

On Thursday, the board voted to refer the matter to the labor law firm of Roemer, Wallens, Gold and Mineaux to investigate the allegations. The Times Union obtained the letter Monday after filing a Freedom of Information request.

Reached at his home, Thomas declined to discuss the incident further.

"We have nothing to say," he said. "It was a private matter. It occurred in a private situation."

Dustin could not be reached for comment Monday. After the board held a closed-door meeting about the incident last week, Dustin declined to discuss what the allegations were about. Asked if he was confident he would be cleared, he replied, "We have to wait and see what happens."

Town Republican Chairman John Graziano Jr. declined to discuss the letter until he sees it.

If the allegations are true, the town's ability to penalize Dustin may be limited, Town Attorney Michael Magguilli said.

The town ethics code requires officials and employees to treat the public with "consideration," and it authorizes the board of ethics to withhold 30 days' pay if they fail to do so. Magguilli said he is not sure if it is legal for an administrative body to withhold the pay of an elected official.

Mahan said that if the allegations are true, Dustin should immediately resign.

"In the event these allegations are true, and I certainly hope they are not, then Mr. Dustin is not fit to represent the good citizens of Colonie."

If Dustin uttered the racial slurs, she added, "Mr. Dustin should do what's in the best interest of the citizens of Colonie and immediately resign his position as a Town Board member."

Staff writer Tim O'Brien can be reached at 454-5092 or by e-mail at tobrien@timesunion.com.